
In case you have a deaf ear to the world’s biggest social networking company, on Friday, May 18, 2012, Facebook had it’s initial public offering on the NASDAQ stock exchange.
Starting at a comfortable $38, the stock took an early tumble by the end of the day as a deluge of buyers followed the major investment companies into the stock. Whether Facebook was worth $100 billion or not didn’t matter – this was as sexy as Wall Street could come outside of Armani suits and Ferragamo shoes. A web company, many believed, that could rival Google as the greatest web IPO of all time.
Naturally there seems to be a gross miscalculation in both value and necessity. The Nasdaq Exchange had “auction software problems” early on, delaying the debut, preventing a fair playing field on trading, and confused the hell out of every clueless investor. Furthermore, the IPO was supposed to be supplemented by Wall Street’s largest companies/crooks: Goldman Sachs, Morgan Stanley and Bank of America had projected a high revenue growth which would have led to massive investment from both firms. By the end of the day they had all lowered their expectations. The stock began to plummet. Regulators have stepped in and brought legal action to Morgan Stanley for possibly deceiving their customers. By tuesday the stock lost 18% of its issuing price, dropping to $31.
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